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Sunday, 8 January 2012

The Cost of Overseas Production

According to an article by Richard McCormack posted on ( The attractive cost of producing goods overseas, China in particular, may be a mirage.

There are a number of hidden costs associated with producing overseas, including quality issues (which of course affects customer confidence and future orders), logistics and inventory schedules. The true cost of products produced in China may be roughly 25% higher than the stated price and only 8% lower than local production.

As China's economy continues to bubble, that cost may climb. This is good news for North American based manufacturers. Our economies could sure use a fresh injection and if the current trend continues, perhaps major manufacturers will see there way to come back home, providing needed jobs and boosting local economies.

1 comment:

  1. Many times the materials are of less quality to USA made materials creating a lower grade end product and bad relations with clients.

    All this and we find ourselves undermining our own economy and jobs.

    Thanks for the post I agree 100%. I foresee a time in the near future when the US is backing off buying from China.